Ikea's latest format store in China. Image courtesy of Ikea
Ikea online sales grew by 73% in its latest financial year to account for more than a quarter (26%) of retail sales.
News of the growth came as Ikea Inter Group, the Ikea franchise business, reported that Ikea retail sales across its different channels reached €41.9bn (£35.3bn) in the 2021 financial year, to August 31 2021, as the business started to recover from the effect of Covid-19. That’s up by 5.8% on last year, and by 1.5% compared to the previous year. While 26% of sales were online in the latest year, 71% took place in stores and 3% were through services. During the year the retailer stopped producing the Ikea catalogue, in response to shoppers’ changing behaviour. More than 5bn visitors visited its website during the year.
During the year Ikea opened 45 new shops, including its first sites in Mexico and Slovenia, and plans to open nearly 60 in the current financial year - and then open an average of 50 new shops a year in 17 markets by the end of its 2023 full year. “All so our customers can touch and try Ikea products before they buy,” says Jon Abrahamsson Ring, chief executive of the Inter Ikea Group, the Ikea franchise business.
Ring said the business had seen a “substantial drop in availability” during the 2021 financial year, making it a challenge to keep Ikea stores and warehouses in stock – and one that is likely to continue in the current financial year. Transport and raw material prices are increasing at the same time.
Ring says: "At Ikea, we want to be affordable for as many people as possible. Despite rising costs, we’ll continue to provide great, responsibly-produced products at the lowest possible prices."
The retailer’s supply chain accounts for two-thirds of its climate footprint, including production at suppliers. It has responded with a programme to help suppliers move to 100% renewable energy, and that nearly 90% of its own business Ikea Industry, is now powered by renewable energy. It is also selling next-generation LED bulbs in-store – with 620m sold so far.
Ikea is a Top150 retailer in RXUK Top500 research.
via https://AiUpNow.com October 15, 2021 at 08:51AM by Chloe Rigby, Khareem Sudlow,
